Naira Value Rises Against US Dollar as CBN Quotes New Exchange Rate for Pound, Euro
- The Nigerian currency, the naira, appreciated in value against the US dollar in the foreign exchange market
- Latest data showed that the naira increased in both the official foreign exchange window and also the unofficial market
- There is hope that the Central Bank of Nigeria now has more firepower to defend the naira in the coming weeks
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The Nigerian currency rebounded in the official foreign exchange markets, and there are signs of better days ahead.
Data from FMDQ securities showed that the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official market, closed against the dollar at 1481.49/$1 on Thursday, June 6.
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Thursday's closing rate shows a slight appreciation of 0.47% or N7 when compared to N1488.60/$, which was exchanged a day earlier.
This happened as the value of FX transactions during the session increased to $213.31 million, compared to $205.43 million on Wednesday.
Naira against the pound, euro
However, the naira's performance in the official market against the British pound and the Euro was different.
The latest Central Bank of Nigeria (CBN) data shows that the naira lost N20 against the pound sterling, closing the trade at N1,899.92/£1 from the previous rate of N1,877.92/£1.
Against the euro, the naira also dropped in value by N8.74, quoting at N1,617.6/€1, in contrast to Monday's value of N1,604.70/€1.
Naira value at unofficial market
Meanwhile, in the parallel market, also known as the black market, the naira saw a slight appreciation, reversing to N1,490 a dollar on Thursday compared to N1,500 sold on Wednesday.
There are signs that the naira will appreciate in the coming days following the settlement of over $1.3 billion FX forwards contracts by the CBN, which will reduce the volume of unsettled forex contracts and cut forex pressure.
Expert predicts naira new exchange rate against dollar
Legit.ng earlier reported that renowned economist Bismarck Rewane disclosed his expectations for the performance of the naira in the remainder of 2024
The chief executive officer of Financial Derivatives Company (FDC) expects the naira to remain at its current level.
He also discussed inflationary trends and predicted the state of the Nigerian economy in the next few years under President Tinubu's administration.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
